For Roads for the Period of the Investment Strategy

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For Roads for the Period of the Investment Strategy INVESTMENT DELIVERY PLAN (IDP) FOR ROADS 1 Contents Section Description 1 Vision / Objectives 2 Funding Profile and Sources 3 Key Programmes / Projects 4 Contribution to Objectives of Infrastructure Investment 5 Delivery Arrangements 6 Risk Management Procedures 7 Monitoring 2 1. Vision / Objectives 1.1 The Programme for Government and the Investment Strategy proposals provide opportunities for further improving both the inter-urban and local road networks in the context of the government’s “investment pillars”, the Regional Development Strategy (RDS) to 2025 and the Regional Transportation Strategy (RTS) 2002 to 2012. These documents set out the government’s policy for development and transport over the ISNI period, and inform the Regional Strategic Transport Network Transport Plan (RSTN TP) the Belfast Metropolitan Transport Plan and the Sub Regional Transport Plan. 1.2 The longer term vision for transportation as stated in the Regional Development Strategy is “to have a modern, sustainable, safe transportation system which benefits society, the economy, and the environment and which actively contributes to social inclusion and everybody’s quality of life”. Translating this into specific objectives and priorities for our road infrastructure, the Regional Transportation Strategy aims to develop a Regional Strategic Transport Network, based on the Key Transport Corridors, to enhance accessibility to regional facilities and services. In other words investment in roads meets two of the Executives three strategic objectives in terms of promoting economic growth and competitiveness and balanced regional development, and has some positive and some negative impacts on the environmental objective. 1.3 Transport is a key driver of economic development and provides the means for all citizens to access social and educational services as well as leisure activities. A modern economy needs an efficient and low cost transport system in order to compete in the global marketplace Roads Service believes that meeting the Regional Development Strategy objective will require upgrading all of the Key Transport Corridors to at least dual carriageway standard. For the period of the Investment Strategy Roads Service’s indicative budget has risen to £3.1 billion over the 10 year period. Of this amount Roads Service proposes to invest just under £2.5 billion on Strategic Road Improvements, of which £2.1 billion is for dualling projects on the KTCs. Details of the programme are described further in Section 3 of this document. 1.4 Our primary inter-urban routes are grouped into 5 key transport corridors as shown in Figure 1. With the exception of the M1 and M2 motorways into Belfast, the majority of these roads are single carriageway and many pass through towns and villages on the route. The quality of the road network was identified as a significant contributor to our infrastructure deficit which was to be addressed by the Reinvestment and Reform Initiative. 3 This started the process of increasing the rate of public investment in the road infrastructure, and the historic level of investment in improving the roads network is shown in Figure 2. Figure 2 shows how capital investment has been running at around £50m in recent years, but under the Investment Strategy proposals is projected to rise to just under £600m per year in 2013 and incorporates a £400m contribution from the Irish Government to the A5 and A8 dual carriageway proposals. 1.5 Roads here are managed, maintained and developed by Roads Service, which is an Executive Agency within the Department for Regional Development. The road network is vital to the economy and the wellbeing of citizens. It carries 98% of freight and 87% of inter-urban public transport journeys (through Ulsterbus services). The value of this asset on Roads Service’s balance sheet is £34 billion. 1.6 As an Executive Agency, Roads Service has its own management board and its Chief Executive is the Accounting Officer. DRD’s Public Service Agreement (PSA) targets are directly dependent on these investment proposals and the achievement of a 2.5% decrease in peak hour journey times on the key transport corridors and the delivery of a safer roads network with measurable reductions in road deaths and serious injury. The targets are explained in more detail under PSAs 13 and 14 in the Executive’s Programme for Government - http://www.pfgbudgetni.gov.uk/finalpfg.pdf. 1.7 The Roads Sub Pillar within the Networks Pillar is divided into a number of separate Programmes: the Key Transport Corridors; the remainder of the Strategic Road Network (primarily the Link Corridors) and non strategic major works improvements; Local road improvements incorporating road safety measures; and street lighting. 1.8 There are a number of interdependencies between the Roads Sub Pillar and the Public Transport and Gateways Sub Pillar. Investment in the road network will increase the attractiveness of bus and coach travel, and reduce the costs of accessing the ports and airports for both freight and passengers. 2. Funding Profile and Sources 2.1 Table 2.1 below provides a breakdown of the investment for Roads for the period of the Investment Strategy. 4 Table 2.1: Roads annual investment profile Year NI Additional Total Executive Funds* Funds Current £m £m £m prices 2008/09 178.0 - 178.0 2009/10 185.1 - 185.1 2010/11 248.7 - 248.7 Total 611.8 - 611.8 Years 1-3 2011/12 154.4 - 154.4 2012/13 137.0 200.0 337.0 2013/14 397.2 200.0 597.2 2014/15 503.4 - 503.4 2015/16 416.3 - 416.3 2016/17 294.3 - 294.3 2017/18 180.6 - 180.6 Total 2,083.2 400.0 2,483.2 Years 4-10 Overall 2,695.0 400.0 3,095.0 Total * Profiling of additional funding to be agreed with Irish Government 2.2 A summary of the investment profile by programme is depicted in Table 2.2. Roads Investment Profile Table 2.2 700.00 600.00 500.00 400.00 £m 300.00 200.00 100.00 - 1 2 3 4 5 6 7 8 9 10 Additional Funds - - - - 200.00 200.00 - - - PPP 99.50 42.40 187.50 - - - - - - - SRI 43.40 107.20 24.70 113.40 87.00 334.20 425.40 326.30 209.30 87.60 Major Works and LTSMs 28.60 29.00 30.00 31.00 40.00 50.00 60.00 72.00 67.00 75.00 Other 6.50 6.50 6.50 10.00 10.00 13.00 18.00 18.00 18.00 18.00 Year Other Major Works and LTSMs SRI PPP Additional Funds 5 3. Key Programmes / Projects SRI Programme 3.1 Annex 1 shows the programme of Strategic Road Improvements that are proposed over the 10 years of the ISNI period to 2017/18. The scheme locations are illustrated in Figure 3. Roads Service has recently undertaken a review of the estimates for the schemes within the existing SRI Programme and it is worthy of note that whereas estimates have been uplifted to 2008 prices land is a volatile market here and may be subject to further significant rises. 3.2 The total investment in the region’s strategic road network between 2008/09 and 2017/18 is envisaged as £2.5 billion, including a proposed £400m contribution to the cost of the A5 and A8 dualling projects from the Irish Government. The following dual carriageway improvements are planned for the Key Transport Corridors; the full Western Corridor (A5); the A6 Derry – Dungiven and Castledawson - Randalstown; and the full Eastern Seaboard Corridor (A8/M2/M1/A1) between Larne and the border. Further dual carriageway projects will be undertaken on the Northern Corridor, Link corridors and trunk roads. 3.3 This represents a step change in the level of capital investment in the strategic network compared to recent years. However, it is assumed that all of the capital investment would be covered from the Roads Service Capital budget, even if financed through DBFO contracts, since these are recognised “on balance sheet”. Developer contributions are unlikely to provide a significant contribution to the costs of improvements to the Key Transport Corridors because of the inter-urban character of the network. 3.4 These projects will be the primary means through which the Department will achieve its PSA target to reduce journey times by 2015 by 2.5% in comparison to 2003 levels. They will also make a significant contribution towards the PSA to deliver a safer roads network and achieve measurable reductions in road deaths and serious injury. 3.5 The envisaged investment figures include for an assumed annual inflation level of 2.7%, however construction cost inflation as well as increases in land prices have been significantly higher than that in recent years. A further concern would be the effect of 6 overheating of the construction sector on tender prices1, which would need to be monitored, but any delay as a result of these factors would also increase opportunity costs and the achievement of the Roads Service’s long term objective for the network. 3.6 Roads Service plan to deliver some £1m per annum of asset disposals over the life of the ISNI. In addition the Agency will participate in the delivery of the Department's share of additional disposals which may be identified in discussion with the Capital Realisation Taskforce. DBFO Projects 3.7 Roads Service is continuing to progress two Public Private Partnership (PPP) Programmes. The first package (total value of approximately £137m) has already seen the opening of new slip roads from Antrim Area Hospital onto the M2 along with the Grosvenor Road junction. Construction work on widening the M1/Westlink and M2 will be completed in 2009.
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